Litro in gas turmoil : MD given marching orders | Sunday Observer

Litro in gas turmoil : MD given marching orders

21 April, 2019

In the face of mounting pressure Manging Director of Litro Gas Muditha Peiris will step down from his position, the Sunday Observer reliably learns.

It was a few weeks ago that Peiris launched a scathing attack on a newly appointed director that many people were of the opinion that the objective behind the move was for him to have an easy ride when it comes to tenders for gas. He allegedly has a few cronies who have managed to manipulate tender proceedings and had been able to award tenders to once blacklisted company from the Middle East.

Peiris is allegedly putting the consumers at risk by unwarranted action sources who wished to remain anonymous told the Sunday Observer.

Due to several allegations of misconduct and allowing to create an illegal monopoly the removal of the MD was called for from several quarters. Minister of Finance Mangala Samaraweera in a letter to the Secretaries of Litro Gas Lanka (Pvt) Ltd. informed that Muditha Peiris will cease to be a Director with effect from February 25, 2019. However, he still remains in position despite his removal by the Minister.

Speaking in Parliament earlier this month, UNP Colombo District MP Hirunika Premachandra called for the removal of Peiris over several allegations. “It is necessary to bring to your attention the current circumstances that have been unfolding at Litro Gas Lanka over the past three years under Muditha Peiris, the Managing Director, and his minions on the Board of Directors,” she said.

According to her, severe malpractices and irregular tender procedures created an illegal monopoly within Litro Gas Lanka, where for the last three years an Indian company called Mauria Udyog Ltd. allegedly has been the sole supplier of LPG cylinders.

The Litro Gas cylinders have continued to have issues. Over 40,000 rubber gaskets allegedly have been given each month to distributors to seal leakages which have been found on new Mauria Udyog Ltd. LPG cylinders.

Speaking to the Sunday Observer she said that there have been roughly 100,000 complaints per month for over two years, according to the information that she has received.

“There has been a 60 per cent defect ratio in terms of leakages for LPG cylinders supplied and the leaks in these new cylinders have caused multiple fatalities and severe injuries. The customer service complaints which are available should show the severity of their actions,” she said.

Further allegations state that severe tender manipulations have taken place resulting in creating a tender procedure where the bids are separated into two envelopes - technical evaluation and price evaluation - and the price is only checked if the bidder passes the technical evaluation bid. This procedure allegedly has helped them to manipulate the Standing Cabinet Procurement

Committee procedures, thereby putting the Sri Lankan public at great risk.

“Mauria Udyog Ltd., a company which is notorious for safety issues in their LPG cylinders, always passes the technical evaluation. The malpractices of Muditha Peiris have put the country and citizens at open risk, in order to ensure financial gain for themselves,” Premachandra said.